A checking account is a necessity for most people, but they’re definitely not one-size-fits-all. Ultra-high-net-worth individuals need checking accounts that are equipped to meet their unique wealth management needs.
Many high-net-worth individuals choose to conduct their banking at the same institutions that are frequented by average consumers. In order to meet the needs of this clientele group, these banks have created accounts that come with special perquisites for the ultra-rich, such as personal bankers, waived fees, and the option of placing trades.
Key Takeaways
- Ultra-high-net-worth individuals need checking accounts that are equipped to meet their unique wealth management needs.
- Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultra-rich, such as personal bankers, waived fees, and the option of placing trades.
- The ultra rich are considered to be those with more than $30 million in assets.
These ten checking accounts are designed with the wealthy in mind and are intended for banking clients who desire convenient access to cash with premium benefits.
1. Bank of America Private Bank
Private Bank is the private banking division of Bank of America, and it targets individuals with a minimum of $3 million in liquid assets. The Wealth Management Interest checking account is geared toward high-net-worth individuals who want to earn a competitive rate, with standard bank fees waived when you meet minimum balance requirements. There are no monthly maintenance fees and members are eligible to enroll in the Preferred Rewards program, which offers exclusive benefits such as a 75% bonus on rewards earned with a Bank of America credit card.
2. Citigold Private Client
The Citigold Private Client Account Package is an all-in-one banking product that’s designed to simplify cash management for wealthy clients. The package includes access to Citibank checking, savings, and money market accounts with perks such as unlimited refunds on non-Citibank ATM fees and higher daily limits on ATM withdrawals and debit card purchases. Account-holders also receive personalized guidance from a wealth professional, and many of Citibank's typical banking service fees are waived for Private Client members.
3. Union Bank Private Advantage Checking Account
The Union Bank Private Advantage checking account is available exclusively to Private Bank clients. This account, which can be opened with $1,000, has no monthly maintenance fees of any kind and no minimum balance requirements. Balances earn interest, which is compounded and paid monthly. Private Advantage Checking customers pay no overdraft fees and no ATM fees worldwide and have a dedicated relationship manager available to answer questions and provide assistance.
4. HSBC Premier Checking
HSBC Premier Checking makes it easy to enjoy valuable benefits while avoiding monthly maintenance fees. To avoid a monthly service fee, you can do one of the following:
- Meet a $75,000 minimum balance requirement
- Schedule recurring direct deposits totaling at least $5,000 per month
- Have an HSBC U.S. residential mortgage with an original loan amount of $500,000 or more.
If you're unable to meet one of these requirements, a $50 monthly maintenance fee applies. Premier Checking customers enjoy unlimited rebates on non-HSBC ATM fees, access to preferential mortgage rates and access to one of the bank's highest-yielding savings accounts.
5. Morgan Stanley CashPlus
Morgan Stanley CashPlus is designed to be an all-in-one cash management solution. There are two account tiers available, Premium CashPlus and Platinum CashPlus. There are no cash management fees with either account and both offer unlimited ATM fee rebates worldwide. A $25,000 average daily cash balance is required to avoid a monthly service fee of $45. The Platinum CashPlus account also comes with additional benefits, such as a $695 annual engagement bonus for customers who have the Platinum Card from American Express Exclusively for Morgan Stanley.
6. TD Bank Private Banking
TD Bank offers private banking services to clients in the U.S. and Canada and is ideally suited for those with $750,000 or more in investable assets. Private banking options include Private Tiered Checking and Private Tiered Savings accounts. Business deposit accounts and liquidity solutions are also offered. Private Client members can withdraw up to $1,500 daily at ATMs and make point of sale transactions up to $20,000, while mobile deposit limits of $50,000 per day and $100,000 per month are included with premium concierge banking services.
7. Truist Wealth Checking
Truist's (formerly BB&T) wealth management division offers an impressive range of products and services. The Truist Wealth Checking account offers perks such as tiered interest checking, fee discounts, and preferred rates on loans. Benefits also include a daily ATM withdrawal limit of $3,000 and a daily purchase limit of $25,000. There are no monthly maintenance fees on secondary checking accounts, one personal Truist savings account or existing Money Rate savings account or one Health Savings Account.
8. PNC Private Bank Checking
PNC Private Bank Checking is a cash management solution for people who want convenience and the opportunity to earn interest on balances. PNC Private Bank Clients work with a dedicated Banking Advisor to help you better understand and plan for your short- and long-term financial needs. In addition to the Private Bank Checking account, you can also open a Private Bank Money Market account. Neither account requires a minimum balance to open or carries a monthly service fee. Private Bank Checking comes with a debit card while Private Bank Money Market Accounts offer an ATM card only.
9. BNY Mellon Cash Management Access Account
The BNY Mellon Cash Management Accessaccount is a self-directed investmentproduct that combines the functionality of abrokerage accountwith the features of a checking account.Clients have the option of placing trade orders for stocks and mutual funds, paying bills, and overseeing their general day-to-day finances. This account could work well if you want to be able to combine investing with other financial management tasks.
10. Chase Private Client
Chase Private Client is designed for individuals who maintain a minimum daily balance of at least $150,000 in a combination of linked checking, savings, or investment accounts or have a Chase Platinum Business Checking Account. There’s no monthly service fee when these conditions are met; otherwise, a $35 monthly fee applies. Account benefits include higher interest rates on linked savings accounts and CDs, higher daily deposit and withdrawal limits as well as fee waivers on selected services, including wire transfers and foreign ATM withdrawals.
What Is an Ultra-High-Net-Worth Individual?
These are people with investable assets of at least $30 million, according to the 2021 Knight Frank Wealth Report. By comparison, high-net-worth people have at least $1 million in assets. This group of people is small but continues to grow. The U.S. has the most of these people in the world by a large margin.
How do the ultra rich get their wealth?
Many ultra-high-net-worth individuals derive the majority of their wealth from owning their own businesses, and may others get most of their wealth from their investment portfolios, while a smaller portion get most of their wealth from their salary, according to the Knight Frank Wealth Report.
What banking services do the ultra rich expect?
Most do not have their money sitting incertificates of deposit(CDs), money market accounts, or mutual funds in a401(k). From their private bank they expect personalized investment services, low-interest loans, high-touch financial management services, and other generous amenities that entice them to remain a client.
Bottom Line
The ultra rich, or those individuals with more than $30 million in assets, are growing in number. They expect more from their banks than the usual mortgages, low-interest savings accounts and basic checking offered to the bulk of banking customers. From their private bank they expect personalized investment services, low-interest loans, high-touch financial management services, and other generous amenities that entice them to remain a client. And the world's biggest banks have responded in order to keep these high spenders satisfied customers.
FAQs
Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultra-rich, such as personal bankers, waived fees, and the option of placing trades. The ultra rich are considered to be those with more than $30 million in assets.
Why do rich people have multiple accounts? ›
Wealthy people use many accounts to build wealth, and three are widely available. They use retirement accounts like IRAs and 401(k)s for tax benefits and free money. And they love to buy low-cost index funds in brokerage accounts to build accessible wealth.
What banks do the super rich use? ›
8 Checking Accounts the Ultra Rich Use
- Bank of America Private Bank. ...
- Chase Private Client. ...
- Morgan Stanley CashPlus. ...
- HSBC Premier Checking. ...
- TD Bank Private Banking. ...
- PNC Private Bank Checking. ...
- Truist Wealth Checking. ...
- Citigold Private Client.
are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.
What to do if you have more than 250k in the bank? ›
Perhaps the most straightforward way to get another $250,000 insured is to open an account at a second FDIC member bank. If you're using accounts that earn interest at a bank with only FDIC insurance, be sure your deposits are low enough that your balance with interest will be within the $250,000 limit.
What bank does Warren Buffett use? ›
Berkshire Hathaway is the top shareholder of Bank of America Corp. BAC, -2.37% , American Express Co. AXP, -1.94% , U.S. Bancorp USB, -2.11% and Bank of New York Mellon Corp.
...
Referenced Symbols.
| Bank or Group | American Express Co. |
|---|
| Ticker | AXP, -1.94% |
|---|
| Price/ tangible book | 6.43 |
|---|
| Forward P/E | 16.2 |
|---|
| Dividend yield | 1.33% |
|---|
8 more columns17 May 2022
You can deposit a million dollars in a bank since banks do not impose maximum deposit limits. However, consider several factors before you make your deposit. Such factors include deposit insurance limits and deposit hold times. The size of your deposit can also have a negative impact on your interest rate.
How much is too much in savings? ›
The danger of too much in savings
(FDIC), which covers up to $250,000 per person, per account type at an FDIC-insured bank, means that your savings are protected by the federal government if your bank fails.
How many bank accounts should I have? ›
An expert recommends having four bank accounts for budgeting and building wealth. Open two checking accounts, one for bills and one for spending money. Have a savings account for your emergency fund, then a second account for other savings goals.
How do rich people store their money? ›
Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.
High-net-worth individuals (HNWIs): People or households who own liquid assets valued between $1 million and $5 million. Very-high-net-worth individuals (VHNWIs): People or households who hold liquid assets valued between $5 million and $30 million.
What bank does the queen use? ›
Coutts
| Type | Subsidiary; Private unlimited company |
|---|
| Total equity | £ 1.375 billion (2020) |
| Number of employees | 1,560 (2018) |
| Parent | NatWest Holdings |
| Website | coutts.com |
9 more rowsRequirements for Private Banking
Clients with at least $10 million in assets can become J.P. Morgan private bank customers. 3 Its wealthy clients enjoy custom financial planning, goals-based investing and advice, cross-border wealth advisory, and more.
Can I live off the interest of 1 million dollars? ›
The historical S&P average annualized returns have been 9.2%. So investing $1,000,000 in the stock market will get you $96,352 in interest in a year. This is enough to live on for most people.
What assets make up wealthy? ›
Households in the very top wealth deciles (the top 20%) have financial assets that go beyond retirement accounts and real estate in their primary residence, including securities like stocks, bonds, investment funds and trusts.
How do I insure 2 millions in the bank? ›
How to Insure Excess Deposits
- Open New Accounts at Different Banks. ...
- Use CDARS to Insure Excess Bank Deposits. ...
- Consider Moving Some of Your Money to a Credit Union. ...
- Open a Cash Management Account. ...
- Weigh Other Options.
Minimum balances aside, how much money can you have in a checking account? There is no maximum limit, but your checking account balance is only FDIC insured up to $250,000. However, as we'll cover shortly, it makes sense to put extra cash somewhere it will earn interest.
How much money can you put in a bank without questions? ›
The Law Behind Bank Deposits Over $10,000
The Bank Secrecy Act is officially called the Currency and Foreign Transactions Reporting Act, started in 1970. It states that banks must report any deposits (and withdrawals, for that matter) that they receive over $10,000 to the Internal Revenue Service.
Why did Warren Buffett leave Wells Fargo? ›
What led to the sale? It's pretty clear that Buffett and Berkshire exited Wells Fargo because of the years of dealing with the fallout of the bank's phony accounts scandal, in which employees at Wells Fargo opened credit card and bank accounts on behalf of thousands of customers without their consent.
What is the best private bank in the US? ›
For the third year in a row, J.P. Morgan has been named the “Best Private Bank in the World” by Global Finance. The firm also has won 2022's “Best Private Bank in North America” and the “Best Private Bank in the United States.”
Berkshire Hathaway (BRKB) disclosed late Monday that it sold its remaining stake in Wells Fargo (WFC) during the first quarter, according to the conglomerate's latest filing of holdings with the Securities and Exchange Commission. Shares of Wells Fargo rallied with other bank stocks Tuesday, however.
How much cash is too much? ›
The general rule is 30% of your income, but many financial gurus will argue that 30% is much too high.
How much cash can be kept at home? ›
Failure to reveal the source of the money kept in the house can lead to a fine of up to 137 percent. Transactions exceeding Rs 20 lakh in cash in a financial year can attract a penalty. According to the CBDT, it is necessary to provide PAN number for depositing or withdrawing cash more than Rs 50,000 at a time.
Can I write a check for a million dollars? ›
To sum up: A check for 1000000 dollars can be spelled as One million and xy/100 dollars; check formats, terms and spelling variants differ. In any case, it includes the date, recipient information, signature as well as the monetary amount twice, one time as decimal number 1000000.
Can you deposit millions into a bank? ›
You can deposit a million dollars in a bank since banks do not impose maximum deposit limits. However, consider several factors before you make your deposit. Such factors include deposit insurance limits and deposit hold times. The size of your deposit can also have a negative impact on your interest rate.
How do you transfer millions of dollars? ›
Millions of U.S. households send billions of dollars abroad every year.
...
The following are five of the best and most secure ways to accomplish this task.
- Bank-to-Bank Transfers. ...
- Wire Transfers. ...
- Automated Clearing House Transactions. ...
- Cash-to-Cash Transfers. ...
- Prepaid Debit Cards.
Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth.
Where do billionaires invest their money? ›
Private Equity and Hedge Funds
Private equity and hedge funds sit adjacent to securities and trading markets. While they aren't the same thing, these two types of investment tools are popular among billionaires. They appeal to people of high net worth who can afford large investments and higher risk.
How much cash is too much? ›
The general rule is 30% of your income, but many financial gurus will argue that 30% is much too high.
What is the maximum amount of money you can have in a checking account? ›
Minimum balances aside, how much money can you have in a checking account? There is no maximum limit, but your checking account balance is only FDIC insured up to $250,000. However, as we'll cover shortly, it makes sense to put extra cash somewhere it will earn interest.
Failure to reveal the source of the money kept in the house can lead to a fine of up to 137 percent. Transactions exceeding Rs 20 lakh in cash in a financial year can attract a penalty. According to the CBDT, it is necessary to provide PAN number for depositing or withdrawing cash more than Rs 50,000 at a time.
How much money can I transfer without being flagged? ›
How much money can you wire without being reported? Financial institutions and money transfer providers are obligated to report international transfers that exceed $10,000. You can learn more about the Bank Secrecy Act from the Office of the Comptroller of the Currency.
Can you wire one million dollars? ›
Yes. Money transfer services and banks all report large transfers. And it's not just the 1 million dollar ones, either. Some have reporting thresholds as low as $1,000.
How much money can I deposit in the bank without being reported? ›
How Much Money Can You Deposit Before It Is Reported? Banks and financial institutions must report any cash deposit exceeding $10,000 to the IRS, and they must do it within 15 days of receipt.
What to do if you have more than 250k in the bank? ›
Perhaps the most straightforward way to get another $250,000 insured is to open an account at a second FDIC member bank. If you're using accounts that earn interest at a bank with only FDIC insurance, be sure your deposits are low enough that your balance with interest will be within the $250,000 limit.
What bank does Warren Buffett use? ›
Berkshire Hathaway is the top shareholder of Bank of America Corp. BAC, -2.37% , American Express Co. AXP, -1.94% , U.S. Bancorp USB, -2.11% and Bank of New York Mellon Corp.
...
Referenced Symbols.
| Bank or Group | American Express Co. |
|---|
| Ticker | AXP, -1.94% |
|---|
| Price/ tangible book | 6.43 |
|---|
| Forward P/E | 16.2 |
|---|
| Dividend yield | 1.33% |
|---|
8 more columns17 May 2022
The danger of too much in savings
(FDIC), which covers up to $250,000 per person, per account type at an FDIC-insured bank, means that your savings are protected by the federal government if your bank fails.
What assets do wealthy people buy? ›
Millionaires invested more than three-quarters of their money in stock, bonds, real estate and alternative investments, says the just-released World Wealth Report from Capgemini Research Institute. All four of these assets types are down an average of more than 15% over the past year.
What is considered a high net worth individual? ›
High-net-worth individuals (HNWIs): People or households who own liquid assets valued between $1 million and $5 million. Very-high-net-worth individuals (VHNWIs): People or households who hold liquid assets valued between $5 million and $30 million.
